Weavering Founder Must Face Trial, Judge Rules

Mar 17 2014 | 3:43am ET

Accused hedge fund fraudster Magnus Peterson won’t be getting off on at least one technicality.

The founder of collapsed hedge fund Weavering Capital has lost his abuse of process claim against the U.K. Serious Fraud Office. Peterson, who is accused of defrauding investors of US$600 million, argued that the SFO improperly reopened its case against him. But, in spite of some concerns, Justice Andrew Smith said Peterson’s trial should proceed.

The SFO closed its initial probe into Weavering in 2011, two years after it collapsed. But the following year, Peterson was found liable for fraud in a London civil case, leading the SFO to reopen its investigation.

Peterson complained that the move was improper, given the submissions he made in the civil case, and because the case was not officially accepted by then-SFO director Richard Alderman. Smith acknowledged that it was “surprising and disturbing” that Alderman’s delegation of his responsibility to officially accept cases to a deputy “came in so casually that it was not even recorded,” but that it was valid all the same.

Peterson’s trial is set to begin in October.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.